Phoenix Petroleum to buy Petronas PHL unit via debt financing

Phoenix Petroleum Philippines Inc. intends to fund the acquisition of Petronas Energy Philippines Inc. via loans from local banks, a top official of the company said Tuesday.

"We are funding it by debt. We are in talks with some banks right now," Phoenix Petroleum chief finance officer Joseph John Ong told reporters on the sidelines of the company's 10th year listing anniversary in Makati City

President Rodrigo Duterte came after the market closed and gave a speech.

"At the moment, it's all going to be funded by debt," Ong said.

In a disclosure to the Philippine Stock Exchange on July 5, the company said its board of directors approved the plan to buy 100 percent Petronas Energy for $126.1 million or P6.268 billion.

Ong noted that the acquisition will be reviewed by the Philippine Competition Commission.

The acquisition is in line with Phoenix Petroleum's plan to go into the liquefied petroleum gas (LPG) business.

"We are not in LPG. That's the one item we are seeing in our portfolio. So the next logical aspect of our business is to go to LPG. We don't want to start it from scratch. It was logical to look for something to acquire," he said. — VDS, GMA News